RE: RNS14 Mar 2025 18:37
New brokers report out today
In summary
Conclusion. SAE is a UK renewables company pursing BESS and tidal energy projects. The company holds the site of the former Uskmouth power station in Wales, where an initial 460MWH (230MW) BESS project is already underway, and this could be subsequently upgraded to 350MW. SAE has capacity for 926MW of new BESS projects across its Uskmouth site and its Mey site in Scotland, supported by agreed grid connections. While the initial Uskmouth BESS project has been fully sold to third parties (for £19.9m cash), the company intends to retain an equity stake in new projects going forward, with partial project sales to help fund SAE’s equity CAPEX requirements. This could result in development and ownership of a significant operational BESS portfolio for the company over the coming years. Complementing its BESS activities, SAE holds the innovative 6MW MeyGen tidal stream project in Scotland, which has existing CFD support for an additional 59MW, offering upside potential for the company. SAE has a significant net debt position, but the majority of this is within the MeyGen tidal subsidiary, limiting its importance for the plc. Going forward, we look for progression of the BESS projects, including the Uskmouth 230MW project coming online in 2025, and SAE bringing forward the first of its own BESS projects, likely to be the 120MW AW1. On a risked basis we value the BESS portfolio at 5.7p, with the potential for tidal to add another 1.3p, and we have a positive outlook for the shares.